JUUL Labs Agrees to $434 Million Settlement in Tennessee

The Attorney General of Tennessee, Jonathan Skrmetti, has filed a complaint and a voluntary compliance agreement regarding the settlement reached between the state of Tennessee and e-cigarette manufacturer JUUL Labs, Inc. The settlement comes as a result of a two-year, bipartisan investigation into JUUL's marketing and sales practices across 34 states. The total settlement amount is $434.9 million, with Tennessee receiving approximately $13 million.

JUUL has tailored their products and advertising to appeal to minors, in an effort to entice them into addiction to e-cigarettes and, in some cases, nicotine addiction," said press secretary Elizabeth Lein. "The company is now facing the consequences of this improper behavior. The Tennessee Attorney General's Office commends the bipartisan group of attorneys general for their collaboration in holding JUUL accountable and stopping their deceptive and harmful marketing practices.

Until recently, JUUL was the dominant player in the e-cigarette market. Investigations in several states have shown that JUUL achieved this position by deliberately engaging in advertising campaigns that targeted young people, despite the fact that their e-cigarettes are illegal for minors to purchase and are unhealthy for them. The investigation found that JUUL ruthlessly marketed to underage users by hosting parties, using young and fashionable models in ads, social media posts and by giving out free samples. They promoted a technologically advanced and discreetly designed product, with flavors intended to appeal to underage users. To retain its young customer base, JUUL relied on its knowledge of ineffective age verification technology.

Officials stated that submitting a voluntary compliance agreement is an important step in ensuring JUUL avoids deceptive and harmful marketing practices in the future. As per the terms of the voluntary compliance agreement, JUUL has agreed to avoid:

The Youth Marketing Sponsorship Education Program describes the use of cartoon paid products by people under the age of 35 for brand sales, allowing access to websites without age verification on the login page for unapproved taste by the FDA. Statements about nicotine without FDA approval are misleading, as are statements about nicotine content. Sponsorship/naming rights advertise in stores unless 85% of the audience is adult. Advertising is done on billboards, public transportation, and social media (excluding personal recommendations without health statements for those over 35). Paid influencers are used for direct-to-consumer advertising, unless age verification is performed, and free samples are provided.

Voluntary compliance assurance also includes sales and distribution restrictions, such as limitations on the placement and accessibility of products in stores, online sales restrictions, retail sales restrictions, age verification for all sales, and retail compliance check protocols.

Tennessee has joined a multi-state investigation led by Connecticut, Texas, and Oregon, along with Alabama, Arkansas, Delaware, Georgia, Hawaii, Idaho, Kansas, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, and Puerto Rico. Also included in the investigation are Rhode Island, South Carolina, South Dakota, Utah, Virginia, Vermont, Wisconsin, and Wyoming.

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